Relief of 3% in stamp duty in Punjab only for six months

MOHALI: The relief in stamp duty of 3% is only for six months as notified in the Punjab gazette dated August 28 by department of legal and legislative affairs Punjab. This ordinance shall be called Indian Stamp (Punjab Amendment) Ordinance 2017, read the gazette notification.

Explaining the benefit of the reduction in stamp duty, former president of property dealers association in Mohali Shailender Anand said if a person buys property worth Rs 1 crore then he is liable to pay stamp duty of 11% which computes to Rs 11 lakh.

And the same is now announced to be reduced by 3% that is to 8%. Following this, one can save Rs 3 lakh on the property worth Rs 1 crore as he has to pay only Rs 8 lakh. Secondly, the buyer with his 3% benefit can use up the same as instalment for the property.

Anand said, “Though no one in past two days has got property registered in Mohali but 3% reduction in stamp duty will definitely give boost to the real estate sector. Mohali has major stake in property which was plagued by recession and the real estate dealers expect an uplift after the notification.

In Punjab, according to our information, first person to get the benefit was in Hoshiarpur where property was registered after gazette notification. The duty reduction is only for six months period after which fresh decision will be taken in the next financial year.”

In Mohali, if a property is to be registered in the name of a male then the stamp duty payable is of 9% and the same becomes 7% if the property is to be registered in the name of a female. If the property has been jointly registered in the name of male and female both, then the stamp duty payable is 8%. After the new notification, all the components will see a reduction of 3% giving much respite to the buyers.

Even after the reduction, the stamp duty in the state is higher than that in Chandigarh, where it is 5%. In Panchkula, Haryana the stamp duty is charged at 7% from males, 5% from females and 6% is charged jointly within the limits of municipal corporation (MC).

The stamp duty is 5% for males, 3% for females and 4% jointly outside MC limits.

Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.